The practice of reporting the net realizable value of receivables in the financial statements is commonly called:
A)the cash flow method of accounting for uncollectible accounts.
B)the direct write-off method of accounting for uncollectible accounts.
C)the allowance method of accounting for uncollectible accounts.
D)the accrual method of accounting for uncollectible accounts.

Question

Quizplus · Accepted Answer

The allowance method dictates that a company report its receivables net of estimated uncollectible accounts.

The Practice of Reporting the Net Realizable Value of Receivables